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4) The H.A.L. Computer Store sells a printer for $200. Demand for this is constant during the year, and annual demand is forecasted to be 600 units. The holding cost is $20 per unit per year, while the cost of ordering is $60 per order. Currently, the company is ordering 12 times per year (50 units each time). There are 250 working days per year and the lead-time is 10 days. (a) Given the currenk policy of ordering 50 units at a time, what is the total of the annual ordering cost and the annual holding cost? (b) If the company used the absolute best inventory policy, what would the total of the ordering and holding cost be? (c) What is the reorder point?

4) The H.A.L. Computer Store sells a printer for $200. Demand for this is constant during the year, and annual demand is forecasted to be 600 units. The holding cost is $20 per unit per year, while the cost of ordering is $60 per order. Currently, the company is ordering 12 times per year (50 units each time). There are 250 working days per year and the lead-time is 10 days. (a) Given the currenk policy of ordering 50 units at a time, what is the total of the annual ordering cost and the annual holding cost? (b) If the company used the absolute best inventory policy, what would the total of the ordering and holding cost be? (c) What is the reorder point?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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4) The H.A.L. Computer Store sells a printer for $200. Demand for this is constant during the year, and annual demand is forecasted to be 600 units. The holding cost is $20 per unit per year, while the cost of ordering is $60 per order. Currently, the company is ordering 12 times per year (50 units cach time). There are 250 working days per year and the lead-time is 10 days. (a) Given the currernk policy of ordering 50 units at a time, what is the total of the annual ordering cost and the annual holding cost? (b) If the company used the absolute best inventory policy, what would the total of the ordering and holding cost be? (c) What is the reorder point?
Transcribed Image Text:4) The H.A.L. Computer Store sells a printer for $200. Demand for this is constant during the year, and annual demand is forecasted to be 600 units. The holding cost is $20 per unit per year, while the cost of ordering is $60 per order. Currently, the company is ordering 12 times per year (50 units cach time). There are 250 working days per year and the lead-time is 10 days. (a) Given the currernk policy of ordering 50 units at a time, what is the total of the annual ordering cost and the annual holding cost? (b) If the company used the absolute best inventory policy, what would the total of the ordering and holding cost be? (c) What is the reorder point?
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